{"id":13866,"date":"2021-02-16T00:00:00","date_gmt":"2021-02-16T00:00:00","guid":{"rendered":"https:\/\/www.nextias.com\/current_affairs\/uncategorized\/16-02-2021\/pli-push-for-software-products\/"},"modified":"2021-02-16T00:00:00","modified_gmt":"2021-02-16T00:00:00","slug":"pli-push-for-software-products","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/16-02-2021\/pli-push-for-software-products","title":{"rendered":"PLI Push for Software Products"},"content":{"rendered":"<p><strong>In News:<\/strong> The <strong>Ministry of Electronics and Information Technology<\/strong> will use the Rs. 1,500 crore earmarked in Budget 2021-22 to <strong>augment safety and infrastructure of the digital payments systems<\/strong>.<\/p>\n<p><strong>Production Linked Subsidy Scheme<\/strong><\/p>\n<ul>\n<li>In <strong>March 2020<\/strong>, the scheme was introduced to <strong>boost domestic manufacturing and cut down on import bills<\/strong>.<\/li>\n<li><strong>Aims<\/strong>\n<ul>\n<li>To give <strong>companies incentives on incremental sales from products manufactured in domestic units<\/strong>.<\/li>\n<li>To <strong>encourage local companies to set up or expand existing manufacturing units<\/strong>.<\/li>\n<li>To make India more compliant with its <strong>World Trade Organisation\u2019s (WTO) commitments<\/strong> and also make it <strong>non-discriminatory and neutral with respect to domestic sales and exports<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><strong>Need<\/strong><\/p>\n<ul>\n<li><strong>Lack of Funds with Government: <\/strong>Government cannot continue investing in capital intensive sectors as they need longer times to start giving the returns.\n<ul>\n<li>Also, the government needs to prioritise its spending for people\u2019s welfare.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Incentivise Local Industries:<\/strong> It will instill a feeling of upgrading systems to maximise production to reap benefits of the subsidy.<\/li>\n<li><strong>Promote FDI from foreign countries:<\/strong> There is a need to invite global companies with adequate capital to set up capacities in India.\n<ul>\n<li>It will make Indian production <strong>more competitive and technology driven<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Focus of Government on Labour intensive industries: <\/strong>Government by puting the capital intensive sectors like electronics and pharmaceuticals, etc. under PLI can focus on labour intensive sectors like garments and leather.<\/li>\n<\/ul>\n<p><strong>Sectors under PLI<\/strong><\/p>\n<ul>\n<li>Electronics.<\/li>\n<li>Pharmaceutical.<\/li>\n<li>Software.<\/li>\n<\/ul>\n<p><strong>Challenges<\/strong><\/p>\n<ul>\n<li><strong>Past SEZs failed:<\/strong> Similar scheme of Special Economic Zones (SEZs) has not yielded desired results.<\/li>\n<li><strong>Export Incentive Schemes created confusion: <\/strong>The new rules and regulations were marred with procedural delays and created confusion by a new set of rules and regulations.<\/li>\n<li><strong>Possible operational inefficiencies and challenges<\/strong>: Although it has succeeded in boosting mobile manufacturing, utmost care must be taken while extending it to other sectors.<\/li>\n<li><strong>Need is to change the business ecosystem<\/strong>: There are other structural problems in Indian Economy which need equal focus.<\/li>\n<\/ul>\n<p><strong>Way Ahead<\/strong><\/p>\n<p>India must learn from past mistakes while creating a Special Economic Zone and implementing Export Linked Subsidy. Further the target should be holistic rather than just boosting the supply spectrum of Indian Market.<\/p>\n<p><strong>Source: <\/strong><a href=\"https:\/\/indianexpress.com\/article\/business\/pli-style-push-for-software-products-planned-focus-on-digital-payments-7188875\/\" target=\"_blank\" rel=\"noopener\"><strong>IE<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In News: The Ministry of Electronics and Information Technology will use the Rs. 1,500 crore earmarked in Budget 2021-22 to augment safety and infrastructure of the digital payments systems. Production Linked Subsidy Scheme In March 2020, the scheme was introduced to boost domestic manufacturing and cut down on import bills. Aims To give companies incentives [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13867,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13866","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2023\/07\/3664438current-affairs (2).jpg","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/13866","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=13866"}],"version-history":[{"count":0,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/13866\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media\/13867"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=13866"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=13866"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=13866"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}